Capitol Federal Financial, Inc.® (NASDAQ: CFFN) (the "Company,"
"we" or "our"), the parent company of Capitol Federal Savings Bank
(the "Bank"), announced results today for the quarter ended
December 31, 2024. For best viewing results, please view this
release in Portable Document Format (PDF) on our website,
https://ir.capfed.com.
Highlights for the current quarter include:
- net income of $15.4 million, $3.4 million higher than the
previous quarter;
- basic and diluted earnings per share of $0.12, up $0.03 from
the previous quarter;
- net interest margin of 1.86%, an increase of six basis points
from the prior quarter;
- continued shift in the loan portfolio to commercial loans with
a $137.5 million increase in that portion of the portfolio;
- paid dividends of $0.085 per share; and
- on January 28, 2025, announced a cash dividend of $0.085 per
share, payable on February 21, 2025 to stockholders of record as of
the close of business on February 7, 2025.
Comparison of Operating Results for the Three Months Ended
December 31, 2024 and September 30, 2024
For the quarter ended December 31, 2024, the Company recognized
net income of $15.4 million, or $0.12 per share, compared to net
income of $12.1 million, or $0.09 per share, for the quarter ended
September 30, 2024. The higher net income in the current quarter
was due primarily to lower income tax expense compared to the prior
quarter due mainly to income tax expense associated with the
pre-1988 bad debt recapture during the prior quarter. There was no
similar tax expense in the current quarter. See additional
discussion regarding the pre-1988 bad debt recapture in the "Income
Tax Expense" section below. The net interest margin increased six
basis points, from 1.80% for the prior quarter to 1.86% for the
current quarter due mainly to growth in the higher yielding
commercial loan portfolio.
Interest and Dividend Income
The following table presents the components of interest and
dividend income for the time periods presented, along with the
change measured in dollars and percent.
For the Three Months
Ended
December 31,
September 30,
Change Expressed in:
2024
2024
Dollars
Percent
(Dollars in thousands)
INTEREST AND DIVIDEND INCOME:
Loans receivable
$
81,394
$
79,841
$
1,553
1.9
%
Mortgage-backed securities ("MBS")
11,024
10,412
612
5.9
Federal Home Loan Bank Topeka ("FHLB")
stock
2,352
2,418
(66
)
(2.7
)
Cash and cash equivalents
1,871
2,562
(691
)
(27.0
)
Investment securities
981
1,634
(653
)
(40.0
)
Total interest and dividend income
$
97,622
$
96,867
$
755
0.8
The increase in interest income on loans receivable was due
mainly to an increase in the average balance of the commercial loan
portfolio, along with an increase in the weighted average yield on
the overall loan portfolio. See additional discussion regarding the
composition of the loan portfolio in the "Financial Condition as of
December 31, 2024" section below. The increase in interest income
on MBS was due to an increase in average balance primarily a result
of purchases made early during the current quarter using excess
cash. The decrease in interest income on cash and cash equivalents
was due mainly to a decrease in the average balance as excess
operating cash was used to fund MBS purchases and commercial loan
activities and to pay semi-annual escrow payments for customers
during the current quarter. The decrease in interest income on
investment securities was due primarily to a decrease in the
average balance as a result of certain called securities not being
replaced in their entirety.
Interest Expense
The following table presents the components of interest expense
for the time periods presented, along with the change measured in
dollars and percent.
For the Three Months
Ended
December 31,
September 30,
Change Expressed in:
2024
2024
Dollars
Percent
(Dollars in thousands)
INTEREST EXPENSE:
Deposits
$
37,345
$
37,458
$
(113
)
(0.3
)%
Borrowings
18,047
18,585
(538
)
(2.9
)
Total interest expense
$
55,392
$
56,043
$
(651
)
(1.2
)
The decrease in interest expense on deposits was due to a
decrease in the weighted average rate on money market accounts,
retail certificates of deposit and checking accounts, which was
almost entirely offset by an increase in the weighted average rate
on savings accounts due to growth in the Bank's high yield savings
account. The decrease in borrowings expense was due primarily to
the maturity of a $50.0 million advance late during the prior
quarter that was not renewed, as well as to a reduction in
borrowings outstanding during the current quarter as a result of
principal payments made on the Bank's amortizing advances.
Provision for Credit Losses
For the quarter ended December 31, 2024, the Bank recorded a
provision for credit losses of $677 thousand, compared to a
provision release of $637 thousand for the prior quarter. The
provision in the current quarter was comprised of a $2.0 million
increase in the allowance for credit losses ("ACL") for loans,
partially offset by a $1.3 million decrease in the reserve for
off-balance sheet credit exposures. The increase in ACL was due
mainly to commercial loan growth during the current quarter. The
decrease in the reserves for off-balance sheet credit exposures was
due primarily to a decrease in the balance of commercial
off-balance sheet credit exposures between quarters due mainly to
the funding of commercial commitments during the current
quarter.
Non-Interest Income
The following table presents the components of non-interest
income for the time periods presented, along with the change
measured in dollars and percent.
For the Three Months
Ended
December 31,
September 30,
Change Expressed in:
2024
2024
Dollars
Percent
(Dollars in thousands)
NON-INTEREST INCOME:
Deposit service fees
$
2,707
$
2,830
$
(123
)
(4.3
)%
Insurance commissions
776
754
22
2.9
Other non-interest income
1,210
1,202
8
0.7
Total non-interest income
$
4,693
$
4,786
$
(93
)
(1.9
)
Non-Interest Expense
The following table presents the components of non-interest
expense for the time periods presented, along with the change
measured in dollars and percent.
For the Three Months
Ended
December 31,
September 30,
Change Expressed in:
2024
2024
Dollars
Percent
(Dollars in thousands)
NON-INTEREST EXPENSE:
Salaries and employee benefits
$
14,232
$
13,086
$
1,146
8.8
%
Information technology and related
expense
4,550
4,637
(87
)
(1.9
)
Occupancy, net
3,333
3,442
(109
)
(3.2
)
Regulatory and outside services
1,113
1,398
(285
)
(20.4
)
Federal insurance premium
1,038
1,113
(75
)
(6.7
)
Advertising and promotional
822
1,054
(232
)
(22.0
)
Deposit and loan transaction costs
591
584
7
1.2
Office supplies and related expense
399
506
(107
)
(21.1
)
Other non-interest expense
1,070
1,220
(150
)
(12.3
)
Total non-interest expense
$
27,148
$
27,040
$
108
0.4
The increase in salaries and employee benefits was due primarily
to the accrual of incentive compensation during the current quarter
related to the Bank's short-term performance plan. The prior
quarter included a reduction in incentive compensation due to the
Company's financial results for fiscal year 2024 being lower than
projected. The decrease in regulatory and outside services was due
primarily to the timing of audit and other outside services. More
services were provided during the prior quarter compared to the
current quarter. The decrease in advertising and promotional
expense was due mainly to the timing of campaigns and sponsorships
compared to the prior quarter. Overall, management is expecting a
4.0% increase in non-interest expenses for fiscal year 2025
compared to fiscal year 2024.
The Company's efficiency ratio was 57.86% for the current
quarter compared to 59.29% for the prior quarter. The improvement
in the efficiency ratio was due to higher net interest income
during the current quarter. The efficiency ratio is a measure of a
financial institution's total non-interest expense as a percentage
of the sum of net interest income (pre-provision for credit losses)
and non-interest income. A lower value generally indicates that it
is costing the financial institution less money to generate
revenue.
Income Tax Expense
The following table presents pretax income, income tax expense,
and net income for the time periods presented, along with the
change measured in dollars and percent and the effective tax
rate.
For the Three Months
Ended
December 31,
September 30,
Change Expressed in:
2024
2024
Dollars
Percent
(Dollars in thousands)
Income before income tax expense
$
19,098
$
19,207
$
(109
)
(0.6
)%
Income tax expense
3,667
7,150
(3,483
)
(48.7
)
Net income
$
15,431
$
12,057
$
3,374
28.0
Effective Tax Rate
19.2
%
37.2
%
Income tax expense was higher in the prior quarter due primarily
to recording $2.0 million of federal income tax expense associated
with the Bank's pre-1988 bad debt recapture, along with higher
state income tax expense mainly related to the tax treatment of the
bad debt recapture. The income tax expense associated with the
pre-1988 bad debt recapture negatively impacted earnings by $0.02
per share in the prior quarter.
The income tax on the earnings distribution from the Bank to the
Company during the prior quarter was due to the recapture of a
portion of the Bank's bad debt reserves which were established
prior to September 30, 1988, and are included in the Bank's
retained earnings ("pre-1988 bad debt reserves"). A taxable net
loss was reported on the Company's September 30, 2024 federal tax
return due to the net losses associated with the securities
strategy (defined in the "Securities Strategy to Improve Earnings"
section below), which resulted in the Bank and Company having a
negative current and accumulated earnings and profit tax position.
This requires the Bank to draw upon the pre-1988 bad debt reserves
for any distributions from the Bank to the Company and to pay taxes
on the reduction to the pre-1988 bad debt reserves at the current
corporate tax rate as of time of such distribution ("pre-1988 bad
debt recapture"). It is the intention of management and the Board
of Directors to not make distributions from the Bank to the Company
during fiscal year 2025 to limit the tax associated with the
pre-1988 bad debt recapture. It is currently anticipated that the
Bank will have sufficient taxable income during fiscal year 2025 to
replenish the Bank's tax accumulated earnings and profits to a
positive level allowing the Bank to make earnings distributions to
the Company during fiscal year 2026 and not have those
distributions subject to the pre-1988 bad debt recapture tax.
Comparison of Operating Results for the Three Months Ended
December 31, 2024 and 2023
The Company recognized net income of $15.4 million, or $0.12 per
share, for the current quarter, compared to net income of $2.5
million, or $0.02 per share, for the prior year quarter. The lower
net income in the prior year quarter was primarily a result of the
impairment loss on the securities associated with the securities
strategy. See additional discussion regarding the securities
strategy in the "Securities Strategy to Improve Earnings" section
below. The securities associated with the securities strategy were
sold in the prior year quarter, and in that quarter the Company
incurred $13.3 million ($10.0 million net of tax) of net losses
related to the sale of those securities. Excluding the effects of
the net loss associated with the securities strategy, earnings per
share would have been $0.10 for the prior year quarter. The
increase in earnings per share excluding the effects of the net
loss associated with the securities strategy was due primarily to
higher net interest income in the current quarter.
The net interest margin increased 15 basis points, from 1.71%
for the prior year quarter to 1.86% for the current quarter. The
increase was due mainly to higher yields on loans and securities,
which outpaced the increase in the cost of deposits, largely in
retail certificates of deposit, along with the continued shift of
loan balances from the one- to four-family loan portfolio to the
higher yielding commercial loan portfolio.
Securities Strategy to Improve Earnings
In October 2023, the Company initiated a securities strategy
(the "securities strategy") by selling $1.30 billion of securities,
representing 94% of its securities portfolio. Since the Company did
not have the intent to hold the $1.30 billion of securities to
maturity at September 30, 2023, the Company recognized an
impairment loss on those securities of $192.6 million which was
reflected in the Company's financial statements for the quarter and
fiscal year ended September 30, 2023. The securities strategy
allowed the Company to improve its earnings stream going forward,
beginning in the quarter ended December 31, 2023, by redeploying
most of the proceeds into then current market rate securities and
to provide liquidity to deleverage the balance sheet utilizing the
remaining proceeds. During the quarter ended December 31, 2023, the
Company completed the sale of securities and recognized $13.3
million ($10.0 million net of tax), or $0.08 per share, of
additional loss related to the sale of the securities. See
additional information regarding the impact of the securities
strategy on our financial measurements in "Average Balance Sheets"
below. The $1.30 billion of securities sold had a weighted average
yield of 1.22% and an average duration of 3.6 years. With the
proceeds from the sale of the securities, the Company purchased
$632.0 million of securities yielding 5.75%, paid down $500.0
million of borrowings with a weighted average cost of 4.70%, and
held the remaining cash at the Federal Reserve Bank of Kansas City
("FRB") earning interest at the reserve balance rate until such
time as it could be used to fund commercial activity or for other
Bank operations.
Interest and Dividend Income
The following table presents the components of interest and
dividend income for the time periods presented, along with the
change measured in dollars and percent.
For the Three Months
Ended
December 31,
Change Expressed in:
2024
2023
Dollars
Percent
(Dollars in thousands)
INTEREST AND DIVIDEND INCOME:
Loans receivable
$
81,394
$
75,941
$
5,453
7.2
%
MBS
11,024
5,859
5,165
88.2
FHLB stock
2,352
2,586
(234
)
(9.0
)
Cash and cash equivalents
1,871
4,778
(2,907
)
(60.8
)
Investment securities
981
2,528
(1,547
)
(61.2
)
Total interest and dividend income
$
97,622
$
91,692
$
5,930
6.5
The increase in interest income on loans receivable was due
largely to an increase in the weighted average yield, along with an
increase in the average balance of the portfolio primarily as a
result of growth in the commercial loan portfolio as the loan
portfolio mix continued to shift from one- to four-family loans to
commercial loans. The increase in the weighted average yield was
due primarily to originations at higher market rates between
periods, as well as disbursements on commercial real estate and
commercial construction loans at rates higher than the overall
portfolio rate. The increase in interest income on MBS securities
was due mainly to an increase in the average balance of the
portfolio, along with an increase in the weighted average yield
compared to the prior year quarter. The increase in the average
balance was due mainly to securities purchases between periods. The
higher weighted average yield was due mainly to the securities
strategy, as the securities that were sold during the prior year
quarter were reinvested into higher yielding securities, and due to
additional securities purchases between periods at higher yields
than the prior year quarter. Interest income on cash and cash
equivalents decreased due largely to a decrease in the average
balance of cash and cash equivalents, as a result of cash balances
being drawn down during the prior fiscal year to fund loans and
other operational needs. The decrease in interest income on
investment securities was due primarily to a decrease in average
balance, partially offset by an increase in the weighted average
yield, both due to the securities strategy. Additionally, the
investment securities purchased with the proceeds from the
securities strategy were invested into shorter term securities
which were largely called or matured during fiscal year 2024.
Interest Expense
The following table presents the components of interest expense
for the time periods presented, along with the change measured in
dollars and percent.
For the Three Months
Ended
December 31,
Change Expressed in:
2024
2023
Dollars
Percent
(Dollars in thousands)
INTEREST EXPENSE:
Deposits
$
37,345
$
32,443
$
4,902
15.1
%
Borrowings
18,047
19,656
(1,609
)
(8.2
)
Total interest expense
$
55,392
$
52,099
$
3,293
6.3
The increase in interest expense on deposits was due primarily
to an increase in the weighted average rate paid on deposits,
specifically retail certificates of deposit and savings accounts,
partially offset by a decrease in the weighted average rate paid on
money market accounts. To a lesser extent, the average balance of
retail certificates of deposit also increased interest expense on
deposits.
The decrease in interest expense on borrowings was due to a
decrease in the average balance, which was partially offset by
higher interest rates on the borrowings that were replaced during
fiscal year 2024. The decrease in the average balance of borrowings
was due to a decrease in borrowings under the Federal Reserve's
Bank Term Funding Program ("BTFP"), which were repaid during the
prior year quarter using some of the proceeds resulting from the
securities strategy, along with some FHLB borrowings that matured
between periods and were not replaced.
Provision for Credit Losses
The Company recorded a provision for credit losses of $677
thousand during the current quarter, compared to a provision for
credit losses of $123 thousand for the prior year quarter. See
"Comparison of Operating Results for the Three Months Ended
December 31, 2024 and September 30, 2024" above for additional
information regarding the provision for credit losses during the
current quarter.
Non-Interest Income
The following table presents the components of non-interest
income for the time periods presented, along with the change
measured in dollars and percent.
For the Three Months
Ended
December 31,
Change Expressed in:
2024
2023
Dollars
Percent
(Dollars in thousands)
NON-INTEREST INCOME:
Deposit service fees
$
2,707
$
2,575
$
132
5.1
%
Insurance commissions
776
863
(87
)
(10.1
)
Net loss from securities transactions
—
(13,345
)
13,345
100.0
Other non-interest income
1,210
1,013
197
19.4
Total non-interest income
$
4,693
$
(8,894
)
$
13,587
152.8
The net loss from securities transactions in the prior year
quarter related to the securities strategy. The increase in other
non-interest income was due mainly to a net loss on financial
derivatives related to a lending relationship in the prior year
quarter, largely driven by changes in market interest rates. The
financial derivatives related to the lending relationship matured
during the fourth quarter of fiscal year 2024 so there was no such
activity in the current quarter.
Non-Interest Expense
The following table presents the components of non-interest
expense for the time periods presented, along with the change
measured in dollars and percent.
For the Three Months
Ended
December 31,
Change Expressed in:
2024
2023
Dollars
Percent
(Dollars in thousands)
NON-INTEREST EXPENSE:
Salaries and employee benefits
$
14,232
$
12,992
$
1,240
9.5
%
Information technology and related
expense
4,550
5,369
(819
)
(15.3
)
Occupancy, net
3,333
3,372
(39
)
(1.2
)
Regulatory and outside services
1,113
1,643
(530
)
(32.3
)
Federal insurance premium
1,038
1,860
(822
)
(44.2
)
Advertising and promotional
822
988
(166
)
(16.8
)
Deposit and loan transaction costs
591
542
49
9.0
Office supplies and related expense
399
361
38
10.5
Other non-interest expense
1,070
1,381
(311
)
(22.5
)
Total non-interest expense
$
27,148
$
28,508
$
(1,360
)
(4.8
)
The increase in salaries and employee benefits was mainly
attributable to salary adjustments between periods to remain market
competitive. The decrease in information technology and related
expense was due mainly to lower third-party project management
expenses due to the Bank's digital transformation project during
the prior year quarter, along with lower software licensing
expenses. The decrease in regulatory and outside services was due
to the prior year quarter including expenses related to the digital
transformation project, along with a reduction in rates and usage
related to certain outside services. The decrease in the federal
insurance premium was due primarily to a decrease in the Federal
Deposit Insurance Corporation ("FDIC") assessment rate as a result
of the way the assessment rate was adjusted in fiscal year 2024 for
the occurrence of the Bank's net loss during the quarter ended
September 30, 2023. The decrease in advertising and promotional
expense was due mainly to the timing of campaigns and sponsorships
compared to the prior year quarter. The decrease in other
non-interest expense was due mainly to the maturity of an interest
rate swap agreement during the current quarter which reduced the
expense associated with the collateral held in relation to the
interest rate swap and due to decreases in other miscellaneous
expenses.
The Company's efficiency ratio was 57.86% for the current
quarter compared to 92.86% for the prior year quarter. Excluding
the net losses from the securities strategy, the efficiency ratio
would have been 64.73% for the prior year quarter. The improvement
in the efficiency ratio, excluding the net losses from the
securities strategy, was due primarily to higher net interest
income and lower non-interest expense in the current quarter
compared to the prior year quarter.
Income Tax Expense
The following table presents pretax income, income tax expense,
and net income for the time periods presented, along with the
change measured in dollars and percent and effective tax rate.
For the Three Months
Ended
December 31,
Change Expressed in:
2024
2023
Dollars
Percent
(Dollars in thousands)
Income before income tax expense
(benefit)
$
19,098
$
2,068
$
17,030
823.5
%
Income tax expense (benefit)
3,667
(475
)
4,142
872.0
Net income
$
15,431
$
2,543
$
12,888
506.8
Effective Tax Rate
19.2
%
(23.0
%)
In the prior year quarter, absent the income tax benefit
associated with the net loss on the securities strategy, the
effective tax rate would have been 18.0% and income tax expense
would have been $2.8 million. Income tax expense was higher in the
current quarter compared to the prior year quarter, excluding the
income tax benefit associated with the net losses on the securities
strategy, due to higher pretax income in the current quarter, along
with a slightly higher effective tax rate in the current
quarter.
Financial Condition as of December 31, 2024
The following table summarizes the Company's financial condition
at the dates indicated.
Annualized
December 31,
September 30,
Percent
2024
2024
Change
(Dollars and shares in
thousands)
Total assets
$
9,538,167
$
9,527,608
0.4
%
Available-for-sale ("AFS") securities
861,501
856,266
2.4
Loans receivable, net
7,953,556
7,907,338
2.3
Deposits
6,206,117
6,129,982
5.0
Borrowings
2,163,775
2,179,564
(2.9
)
Stockholders' equity
1,026,939
1,032,270
(2.1
)
Equity to total assets at end of
period
10.8
%
10.8
%
Average number of basic shares
outstanding
129,973
129,918
0.2
Average number of diluted shares
outstanding
129,973
129,918
0.2
Loans receivable, net increased $46.2 million during the current
quarter. The loan portfolio mix continued to shift from one- to
four-family loans to commercial loans during the current quarter,
with $137.5 million in commercial loan growth, partially offset by
a $90.8 million decrease in one- to four-family loans due primarily
to decreases of $48.7 million and $34.1 million in one- to
four-family correspondent loans and one- to four-family originated
loans, respectively.
As a result of continued high interest rates and lack of housing
inventory which has reduced housing market transactions, our
single-family origination activity has slowed which directly
impacts the Bank's one- to four-family loan portfolio. Origination
and refinance activity has slowed considerably, and there has been
a reduction in one- to four-family loan balances through scheduled
repayments and loan payoffs. Additionally, the Bank suspended its
one- to four-family correspondent lending channels during fiscal
year 2024 for the foreseeable future. Management expects the Bank's
one- to four-family originated loan portfolio will continue to
decrease as the affordability of housing remains challenging and
there is limited supply of homes for sale. Cash flows generated
from the one- to four-family portfolio are currently being used to
fund commercial loan growth.
Deposits increased $76.1 million during the current quarter,
primarily in retail savings accounts due to the Bank's high-yield
savings account offering and retail checking accounts, partially
offset by a decrease in retail certificates of deposit. Management
has continued to focus on retaining and growing deposits through
its high-yield savings account which had an annual percentage yield
of 4.30% for balances over $10 thousand as of December 31, 2024.
The high-yield savings account balance was $171.7 million as of
December 31, 2024 compared to $96.2 million and $520 thousand as of
September 30, 2024 and December 31, 2023, respectively.
Borrowings decreased $15.8 million during the current quarter
due to principal payments made on the Bank's amortizing advances.
Management estimates that the Bank had $2.91 billion in additional
liquidity available at December 31, 2024 based on the Bank's
blanket collateral agreement with FHLB and unencumbered
securities.
The following table summarizes loan originations and purchases,
deposit activity, and borrowing activity, along with certain
related weighted average rates, during the periods indicated. The
borrowings presented in the table have original contractual terms
of one year or longer.
For the Three Months
Ended
December 31, 2024
September 30, 2024
Amount
Rate
Amount
Rate
(Dollars in thousands)
Loan originations, purchases, and
participations
One- to four-family and consumer:
Originated
$
94,245
6.27
%
$
102,076
6.56
%
Commercial:
Originated
171,486
7.02
47,016
7.70
Participations/Purchased
69,790
7.21
13,500
7.43
$
335,521
6.85
$
162,592
6.96
Deposit Activity
Non-maturity deposits
$
126,981
$
(35,178
)
Retail/Commercial certificates of
deposit
(32,833
)
56,395
Borrowing activity
Maturities and repayments
(216,168
)
3.42
(187,418
)
3.01
New borrowings
200,000
4.27
75,000
4.50
Stockholders' Equity
Stockholders' equity totaled $1.03 billion at December 31, 2024,
a decrease of $5.3 million from September 30, 2024 due primarily to
a decrease in accumulated other comprehensive income, net of tax,
partially offset by a decrease in accumulated deficit. The decrease
in the accumulated other comprehensive income, net of tax, was due
to a decrease in unrealized gains on AFS securities as a result of
an increase in market interest rates during the current
quarter.
Consistent with our goal to operate a sound and profitable
financial organization, we actively seek to maintain a
well-capitalized status for the Bank in accordance with regulatory
standards. As of December 31, 2024, the Bank's capital ratios
exceeded the well-capitalized requirements and the Bank exceeded
internal policy thresholds for sensitivity to changes in interest
rates. As of December 31, 2024, the Bank's community bank leverage
ratio was 9.4%.
During the quarter ended December 31, 2024, the Company paid
regular quarterly cash dividends totaling $11.1 million, or $0.085
per share. On January 28, 2025 the Company announced a regular
quarterly cash dividend of $0.085 per share, or approximately $11.1
million, payable on February 21, 2025 to stockholders of record as
of the close of business on February 7, 2025.
At December 31, 2024, Capitol Federal Financial, Inc., at the
holding company level, had $39.1 million in cash on deposit at the
Bank. For fiscal year 2025, it is the intention of the Company's
Board of Directors to pay out the regular quarterly cash dividend
of $0.085 per share, totaling $0.34 per share for the year. To the
extent that earnings in fiscal year 2025 exceed $0.34 per share,
the Board of Directors will consider the payment of additional
dividends. Dividend payments depend upon a number of factors,
including the Company's financial condition and results of
operations, regulatory capital requirements, regulatory limitations
on the Bank's ability to make capital distributions to the Company,
the Bank's taxable current earnings and accumulated earnings and
profits, and the amount of cash at the holding company level.
The Company currently has $75.0 million authorized for
repurchase under an existing stock repurchase plan. The FRB's
current approval for the Company to repurchase shares up to the
$75.0 million authorization expires in February 2025, and an
application for extension is in process. Shares may be repurchased
from time to time based upon market conditions, available liquidity
and other factors. There were no share repurchases during the
current quarter.
The following table presents a reconciliation of total to net
shares outstanding as of December 31, 2024.
Total shares outstanding
132,774,365
Less unallocated Employee Stock Ownership
Plan ("ESOP") shares and unvested restricted stock
(2,755,566
)
Net shares outstanding
130,018,799
Capitol Federal Financial, Inc. is the holding company for the
Bank. The Bank has 46 branch locations in Kansas and Missouri, and
is one of the largest residential lenders in the State of Kansas.
News and other information about the Company can be found at the
Bank's website, http://www.capfed.com.
Forward-Looking
Statements
Except for the historical information contained in this press
release, the matters discussed herein may be deemed to be
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements include statements about our beliefs, plans, objectives,
goals, expectations, anticipations, estimates and intentions. The
words "may," "could," "should," "would," "will," "believe,"
"anticipate," "estimate," "expect," "intend," "plan," and similar
expressions are intended to identify forward-looking statements.
Forward-looking statements involve risks and uncertainties,
including: changes in policies or the application or interpretation
of laws and regulations by regulatory agencies and tax authorities;
other governmental initiatives affecting the financial services
industry; changes in accounting principles, policies or guidelines;
fluctuations in interest rates and the effects of inflation or a
potential recession, whether caused by Federal Reserve action or
otherwise; the impact of bank failures or adverse developments at
other banks and related negative press about the banking industry
in general on investor or depositor sentiment; demand for loans in
the Company's market areas; the future earnings and capital levels
of the Bank and the impact of the pre-1988 bad debt recapture,
which could affect the ability of the Company to pay dividends in
accordance with its dividend policies; competition; and other risks
detailed from time to time in documents filed or furnished by the
Company with the Securities and Exchange Commission. Actual results
may differ materially from those currently expected. These
forward-looking statements represent the Company's judgment as of
the date of this release. The Company disclaims, however, any
intent or obligation to update these forward-looking
statements.
SUPPLEMENTAL FINANCIAL INFORMATION
CAPITOL FEDERAL FINANCIAL, INC.
AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands, except per
share amounts)
December 31,
September 30,
2024
2024
ASSETS:
Cash and cash equivalents (includes
interest-earning deposits of $140,287 and $192,138)
$
170,324
$
217,307
AFS securities, at estimated fair value
(amortized cost of $850,570 and $829,852)
861,501
856,266
Loans receivable, net (ACL of $24,997 and
$23,035)
7,953,556
7,907,338
FHLB stock, at cost
100,364
101,175
Premises and equipment, net
90,326
91,463
Income taxes receivable, net
843
359
Deferred income tax assets, net
24,420
21,978
Other assets
336,833
331,722
TOTAL ASSETS
$
9,538,167
$
9,527,608
LIABILITIES:
Deposits
$
6,206,117
$
6,129,982
Borrowings
2,163,775
2,179,564
Advances by borrowers
26,088
61,801
Other liabilities
115,248
123,991
Total liabilities
8,511,228
8,495,338
STOCKHOLDERS' EQUITY:
Preferred stock, $0.01 par value;
100,000,000 shares authorized, no shares issued or outstanding
—
—
Common stock, $0.01 par value;
1,400,000,000 shares authorized, 132,774,365 and 132,735,565 shares
issued and outstanding as of December 31, 2024 and September 30,
2024, respectively
1,328
1,327
Additional paid-in capital
1,146,802
1,146,851
Unearned compensation, ESOP
(26,019
)
(26,431
)
Accumulated deficit
(106,734
)
(111,104
)
Accumulated other comprehensive income,
net of tax
11,562
21,627
Total stockholders' equity
1,026,939
1,032,270
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY
$
9,538,167
$
9,527,608
CAPITOL FEDERAL FINANCIAL, INC.
AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands)
For the Three Months
Ended
December 31,
September 30,
December 31,
2024
2024
2023
INTEREST AND DIVIDEND INCOME:
Loans receivable
$
81,394
$
79,841
$
75,941
MBS
11,024
10,412
5,859
FHLB stock
2,352
2,418
2,586
Cash and cash equivalents
1,871
2,562
4,778
Investment securities
981
1,634
2,528
Total interest and dividend income
97,622
96,867
91,692
INTEREST EXPENSE:
Deposits
37,345
37,458
32,443
Borrowings
18,047
18,585
19,656
Total interest expense
55,392
56,043
52,099
NET INTEREST INCOME
42,230
40,824
39,593
PROVISION FOR CREDIT LOSSES
677
(637
)
123
NET INTEREST INCOME AFTER PROVISION FOR
CREDIT LOSSES
41,553
41,461
39,470
NON-INTEREST INCOME:
Deposit service fees
2,707
2,830
2,575
Insurance commissions
776
754
863
Net loss from securities transactions
—
—
(13,345
)
Other non-interest income
1,210
1,202
1,013
Total non-interest income
4,693
4,786
(8,894
)
NON-INTEREST EXPENSE:
Salaries and employee benefits
14,232
13,086
12,992
Information technology and related
expense
4,550
4,637
5,369
Occupancy, net
3,333
3,442
3,372
Regulatory and outside services
1,113
1,398
1,643
Federal insurance premium
1,038
1,113
1,860
Advertising and promotional
822
1,054
988
Deposit and loan transaction costs
591
584
542
Office supplies and related expense
399
506
361
Other non-interest expense
1,070
1,220
1,381
Total non-interest expense
27,148
27,040
28,508
INCOME BEFORE INCOME TAX EXPENSE
(BENEFIT)
19,098
19,207
2,068
INCOME TAX EXPENSE (BENEFIT)
3,667
7,150
(475
)
NET INCOME
$
15,431
$
12,057
$
2,543
Average Balance Sheets
The following table presents the average balances of our assets,
liabilities, and stockholders' equity, and the related annualized
weighted average yields and rates on our interest-earning assets
and interest-bearing liabilities for the periods indicated, as well
as selected performance ratios and other information for the
periods shown. Weighted average yields are derived by dividing
annualized income by the average balance of the related assets, and
weighted average rates are derived by dividing annualized expense
by the average balance of the related liabilities, for the periods
shown. Average outstanding balances are derived from average daily
balances. The weighted average yields and rates include
amortization of fees, costs, premiums and discounts, which are
considered adjustments to yields/rates. Weighted average yields on
tax-exempt securities are not calculated on a fully taxable
equivalent basis.
For the Three Months
Ended
December 31, 2024
September 30, 2024
December 31, 2023
Average
Interest
Average
Interest
Average
Interest
Outstanding
Earned/
Yield/
Outstanding
Earned/
Yield/
Outstanding
Earned/
Yield/
Amount
Paid
Rate
Amount
Paid
Rate
Amount
Paid
Rate
(Dollars in thousands)
Assets:
Interest-earning assets:
One- to four-family loans:
Originated
$
3,925,427
$
36,375
3.71
%
$
3,956,014
$
36,188
3.66
%
$
4,025,539
$
35,060
3.48
%
Correspondent purchased
2,212,300
18,089
3.27
2,262,838
18,705
3.31
2,413,900
19,660
3.26
Bulk purchased
126,095
895
2.84
128,520
839
2.61
136,609
694
2.03
Total one- to four-family loans
6,263,822
55,359
3.54
6,347,372
55,732
3.51
6,576,048
55,414
3.37
Commercial loans
1,606,748
23,756
5.79
1,483,197
21,756
5.74
1,306,917
18,267
5.47
Consumer loans
110,661
2,279
8.19
109,404
2,353
8.56
105,958
2,260
8.46
Total loans receivable(1)
7,981,231
81,394
4.05
7,939,973
79,841
4.00
7,988,923
75,941
3.78
MBS(2)
781,252
11,024
5.64
736,695
10,412
5.65
526,733
5,859
4.45
Investment securities(2)(3)
72,561
981
5.41
115,856
1,634
5.64
266,873
2,528
3.79
FHLB stock
99,151
2,352
9.41
101,942
2,418
9.44
108,648
2,586
9.44
Cash and cash equivalents
154,752
1,871
4.73
187,484
2,562
5.35
346,220
4,778
5.40
Total interest-earning assets
9,088,947
97,622
4.27
9,081,950
96,867
4.24
9,237,397
91,692
3.95
Other non-interest-earning assets
463,322
458,253
466,084
Total assets
$
9,552,269
$
9,540,203
$
9,703,481
Liabilities and stockholders' equity:
Interest-bearing liabilities:
Checking
$
865,738
531
0.24
$
853,921
590
0.27
$
886,530
445
0.20
Savings
567,533
1,422
0.99
531,579
972
0.73
472,819
138
0.12
Money market
1,245,714
4,212
1.34
1,243,150
4,630
1.48
1,364,565
6,737
1.96
Retail certificates
2,812,034
29,755
4.20
2,789,666
29,601
4.22
2,555,375
23,199
3.60
Commercial certificates
57,859
636
4.36
59,020
651
4.39
49,558
463
3.70
Wholesale certificates
69,487
789
4.50
87,259
1,014
4.62
130,857
1,461
4.43
Total deposits
5,618,365
37,345
2.64
5,564,595
37,458
2.68
5,459,704
32,443
2.36
Borrowings
2,171,476
18,047
3.30
2,227,278
18,585
3.31
2,467,410
19,656
3.15
Total interest-bearing liabilities
7,789,841
55,392
2.82
7,791,873
56,043
2.86
7,927,114
52,099
2.61
Non-interest-bearing deposits
544,548
534,912
537,144
Other non-interest-bearing liabilities
186,227
184,320
202,743
Stockholders' equity
1,031,653
1,029,098
1,036,480
Total liabilities and stockholders'
equity
$
9,552,269
$
9,540,203
$
9,703,481
Net interest income(4)
$
42,230
$
40,824
$
39,593
Net interest-earning assets
$
1,299,106
$
1,290,077
$
1,310,283
Net interest margin(5)
1.86
1.80
1.71
Ratio of interest-earning assets to
interest-bearing liabilities
1.17x
1.17x
1.17x
Selected performance ratios:
Return on average assets
(annualized)(6)(10)
0.65
%
0.51
%
0.10
%
Return on average equity
(annualized)(7)(10)
5.98
4.69
0.98
Average equity to average assets
10.80
10.79
10.68
Operating expense ratio(8)
1.14
1.13
1.18
Efficiency ratio(9)(10)
57.86
59.29
92.86
(1)
Balances are adjusted for
unearned loan fees and deferred costs. Loans that are 90 or more
days delinquent are included in the loans receivable average
balance with a yield of zero percent.
(2)
AFS securities are adjusted for
unamortized purchase premiums or discounts.
(3)
There were no nontaxable
securities included in the average balance of investment securities
for the quarters ended December 31, 2024 or September 30, 2024. The
average balance of investment securities includes an average
balance of nontaxable securities of $201 thousand for the quarter
ended December 31, 2023.
(4)
Net interest income represents
the difference between interest income earned on interest-earning
assets and interest paid on interest-bearing liabilities. Net
interest income depends on the average balance of interest-earning
assets and interest-bearing liabilities, and the interest rates
earned or paid on them.
(5)
Net interest margin represents
annualized net interest income as a percentage of average
interest-earning assets. Management believes the net interest
margin is important to investors as it is a profitability measure
for financial institutions.
(6)
Return on average assets
represents annualized net income as a percentage of total average
assets. Management believes that the return on average assets is
important to investors as it shows the Company's profitability in
relation to the Company's average assets.
(7)
Return on average equity
represents annualized net income as a percentage of total average
equity. Management believes that the return on average equity is
important to investors as it shows the Company's profitability in
relation to the Company's average equity.
(8)
The operating expense ratio
represents annualized non-interest expense as a percentage of
average assets. Management believes the operating expense ratio is
important to investors as it provides insight into how efficiently
the Company is managing its expenses in relation to its assets. It
is a financial measurement ratio that does not take into
consideration changes in interest rates.
(9)
The efficiency ratio represents
non-interest expense as a percentage of the sum of net interest
income (pre-provision for credit losses) and non-interest income.
Management believes the efficiency ratio is important to investors
as it is a measure of a financial institution's total non-interest
expense as a percentage of the sum of net interest income
(pre-provision for credit losses) and non-interest income. A higher
value generally indicates that it is costing the financial
institution more money to generate revenue, related to its net
interest margin and non-interest income.
(10)
The table below provides a
reconciliation between performance measures presented in accordance
with accounting standards generally accepted in the United States
of America ("GAAP") and the same performance measures excluding the
impact of the net loss on the securities transactions associated
with the securities strategy, which are not presented in accordance
with GAAP. The securities strategy was non-recurring in nature;
therefore management believes it is meaningful to investors to
present certain financial measures excluding the securities
strategy to better evaluate the Company's core operations. See
information regarding the securities strategy in "Comparison of
Operating Results for the Three Months Ended December 31, 2024 and
2023 - Securities Strategy".
For the Three Months
Ended
December 31, 2023
Excluding
Securities
Actual
Securities
Strategy
(GAAP)
Strategy
(Non-GAAP)
Return on average assets
0.10
%
(0.42
)%
0.52
%
Return on average equity
0.98
(3.89
)
4.87
Efficiency Ratio
92.86
28.13
64.73
Earnings per share(11)
$
0.02
$
(0.08
)
$
0.10
(11)
Earnings per share is calculated
as net income divided by average shares outstanding. Management
believes earnings per share is an important measure to investors as
it shows the Company's earnings in relation to the Company's
outstanding shares.
Loan Portfolio
The following table presents information related to the
composition of our loan portfolio in terms of dollar amounts,
weighted average rates, and percentage of total as of the dates
indicated.
December 31, 2024
September 30, 2024
December 31, 2023
% of
% of
% of
Amount
Rate
Total
Amount
Rate
Total
Amount
Rate
Total
(Dollars in thousands)
One- to four-family:
Originated
$
3,907,809
3.64
%
49.0
%
$
3,941,952
3.60
%
49.8
%
$
3,986,479
3.44
%
50.1
%
Correspondent purchased
2,163,847
3.48
27.1
2,212,587
3.48
27.9
2,360,843
3.45
29.7
Bulk purchased
123,029
2.97
1.6
127,161
2.80
1.6
134,504
2.10
1.7
Construction
19,165
6.35
0.2
22,970
6.05
0.3
43,631
4.47
0.5
Total
6,213,850
3.58
77.9
6,304,670
3.55
79.6
6,525,457
3.42
82.0
Commercial:
Commercial real estate
1,353,482
5.48
17.0
1,191,624
5.43
15.0
1,019,431
5.27
12.8
Commercial and industrial
131,267
6.66
1.7
129,678
6.66
1.6
113,686
6.46
1.4
Construction
161,744
6.14
2.0
187,676
6.40
2.4
196,493
5.41
2.5
Total
1,646,493
5.64
20.7
1,508,978
5.65
19.0
1,329,610
5.39
16.7
Consumer loans:
Home equity
103,006
8.31
1.3
99,988
8.90
1.3
96,952
8.84
1.2
Other
9,680
5.77
0.1
9,615
5.72
0.1
9,670
5.32
0.1
Total
112,686
8.09
1.4
109,603
8.62
1.4
106,622
8.52
1.3
Total loans receivable
7,973,029
4.07
100.0
%
7,923,251
4.02
100.0
%
7,961,689
3.82
100.0
%
Less:
ACL
24,997
23,035
24,178
Deferred loan fees/discounts
30,973
30,336
30,653
Premiums/deferred costs
(36,497
)
(37,458
)
(40,652
)
Total loans receivable, net
$
7,953,556
$
7,907,338
$
7,947,510
Loan Activity: The following table summarizes activity in the
loan portfolio, along with weighted average rates where applicable,
for the periods indicated, excluding changes in ACL, deferred loan
fees/discounts, and premiums/deferred costs. Loans that were paid
off as a result of refinances are included in repayments. Loan
endorsements are not included in the activity in the following
table because a new loan is not generated at the time of the
endorsement. The endorsed balance and rate are included in the
ending loan portfolio balance and rate. Commercial loan renewals
are not included in the activity presented in the following table
unless new funds are disbursed at the time of renewal. The renewal
balance and rate are included in the ending loan portfolio balance
and rate. During the current quarter, the one- to four-family loan
portfolio decreased as expected, while the commercial portfolio
grew by 36.5% on an annualized basis. Management does not expect
that rate of commercial loan growth to continue, but does expect
continued growth during the current fiscal year.
For the Three Months
Ended
December 31, 2024
Amount
Rate
(Dollars in thousands)
Beginning balance
$
7,923,251
4.02
%
Originated and refinanced
265,731
6.76
Purchased and participations
69,790
7.21
Change in undisbursed loan funds
(36,990
)
Repayments
(248,760
)
Principal recoveries/ (charge-offs),
net
7
Ending balance
$
7,973,029
4.07
One- to Four-Family Loans: The following table presents, for our
portfolio of one- to four-family loans, the amount, percent of
total, weighted average rate, weighted average credit score,
weighted average loan-to-value ("LTV") ratio, and average balance
per loan as of December 31, 2024. Credit scores were updated in
September 2024 from a nationally recognized consumer rating agency.
The LTV ratios were based on the current loan balance and either
the lesser of the purchase price or original appraisal, or the most
recent Bank appraisal, if available. In most cases, the most recent
appraisal was obtained at the time of origination.
% of
Credit
Average
Amount
Total
Rate
Score
LTV
Balance
(Dollars in thousands)
Originated
$
3,907,809
62.9
%
3.64
%
771
58
%
$
169
Correspondent purchased
2,163,847
34.8
3.48
767
62
401
Bulk purchased
123,029
2.0
2.97
773
53
279
Construction
19,165
0.3
6.35
780
46
355
$
6,213,850
100.0
3.58
770
60
214
The following table presents origination activity in our one- to
four-family loan portfolio, excluding endorsement activity, along
with the weighted average rate, weighted average LTV and weighted
average credit score for the three months ended December 31,
2024.
Credit
Amount
Rate
LTV
Score
(Dollars in thousands)
Originated
$
81,545
5.95
%
72.67
%
766
The following table presents the amount and weighted average
rate of one- to four-family loan origination and refinance
commitments as of December 31, 2024.
Amount
Rate
(Dollars in thousands)
Originate/refinance
$
42,023
6.47
%
Commercial Loans: The table below presents commercial loan
origination and purchase activity during the three months ended
December 31, 2024.
Amount
Rate
(Dollars in thousands)
Commercial real estate
$
147,549
6.84
%
Commercial and industrial
26,686
7.41
Commercial construction
67,041
7.47
$
241,276
7.08
The following table presents commercial loan disbursements,
excluding lines of credit, during the three months ended December
31, 2024.
Amount
Rate
(Dollars in thousands)
Commercial real estate
$
147,268
6.61
%
Commercial and industrial
10,200
7.33
Commercial construction
46,968
6.24
$
204,436
6.56
The following table presents the Bank's commercial real estate
and commercial construction loans by type of primary collateral as
of the dates indicated. As of December 31, 2024, the Bank had five
commercial real estate and commercial construction loan commitments
totaling $53.7 million, at a weighted average rate of 7.32%.
Management anticipates fully funding the majority of the
undisbursed amounts as most are not cancellable by the Bank. Of the
total commercial real estate and commercial construction
undisbursed amounts and commitments outstanding as of December 31,
2024, management anticipates funding approximately $87.5 million
during the March 2025 quarter, $91.4 million during the June 2025
quarter, $73.8 million during the September 2025 quarter, and $94.3
million during the December 2025 quarter or later. At December 31,
2024, the unpaid principal balance of non-owner occupied commercial
real estate loans was $1.02 billion and the unpaid principal
balance of owner occupied commercial real estate loans was $166.1
million, which are included in the table below.
December 31, 2024
September 30, 2024
Unpaid
Undisbursed
Gross Loan
Gross Loan
Count
Principal
Amount
Amount
Amount
(Dollars in thousands)
Hotel
23
$
387,305
$
45,342
$
432,647
$
323,396
Multi-family
37
206,681
179,660
386,341
359,707
Senior housing
37
342,049
3,763
345,812
332,334
Retail building
134
273,496
62,639
336,135
316,261
Office building
78
127,738
672
128,410
127,961
One- to four-family property
315
59,480
4,399
63,879
63,416
Single use building
31
39,799
262
40,061
43,438
Warehouse/manufacturing
48
34,272
297
34,569
34,656
Other
66
44,406
1,319
45,725
62,013
769
$
1,515,226
$
298,353
$
1,813,579
$
1,663,182
Weighted average rate
5.55
%
6.77
%
5.75
%
5.77
%
The following table summarizes the Bank's commercial real estate
and commercial construction loans by state as of the dates
indicated.
December 31, 2024
September 30, 2024
Unpaid
Undisbursed
Gross Loan
Gross Loan
Count
Principal
Amount
Amount
Amount
(Dollars in thousands)
Kansas
566
$
590,691
$
118,471
$
709,162
$
713,437
Texas
20
289,521
40,762
330,283
348,066
Missouri
132
259,886
45,949
305,835
313,146
California
3
80,569
882
81,451
15,040
Colorado
10
46,060
14,745
60,805
50,017
New York
1
60,000
—
60,000
60,000
Nebraska
8
32,262
27,144
59,406
32,422
Tennessee
3
37,840
2,942
40,782
35,973
Other
26
118,397
47,458
165,855
95,081
769
$
1,515,226
$
298,353
$
1,813,579
$
1,663,182
The following table presents the Bank's commercial real estate
and commercial construction loans by unpaid principal balance,
aggregated by type of primary collateral and state, along with
weighted average LTV and weighted average debt service coverage
ratio ("DSCR") as of December 31, 2024. The LTV is calculated using
the gross loan amount (composed of unpaid principal and undisbursed
amounts) as of December 31, 2024 and the most current collateral
value available, which is most often the value at
origination/purchase. For existing real estate, the "as is" value
is used. If the property is to be constructed, the "as completed"
value of the collateral is utilized. The DSCR is calculated based
on historical borrower performance, or projected borrower
performance for newly formed entities with no performance history.
The DSCR is calculated at the time of origination, and is updated
at the time of subsequent loan renewals or reviews of borrower
financials. The DSCR presented in the table below is based on the
DSCR at the time of origination unless an updated DSCR has been
calculated.
Weighted
Weighted
Kansas
Texas
Missouri
California
Other
Total
LTV
DSCR
(Dollars in thousands)
Hotel
$
42,272
$
140,576
$
9,596
$
77,601
$
117,260
$
387,305
54.8
%
1.58
x
Senior housing
176,266
—
109,431
—
56,352
342,049
70.8
1.48
Retail building
86,884
69,651
49,011
—
67,950
273,496
63.0
1.91
Multi-family
122,647
17,926
45,481
—
20,627
206,681
64.3
1.24
Office building
58,079
60,467
8,844
—
348
127,738
52.0
2.69
Other
104,543
901
37,523
2,968
32,022
177,957
59.0
2.99
$
590,691
$
289,521
$
259,886
$
80,569
$
294,559
$
1,515,226
61.4
1.83
Weighted LTV
64.3
%
55.1
%
66.6
%
48.6
%
61.0
%
61.4
%
Weighted DSCR
1.96x
1.51x
2.10x
2.08x
1.58x
1.83x
The following table presents the Bank's commercial real estate
and construction loans and outstanding loan commitments,
categorized by aggregate gross loan amount (unpaid principal plus
undisbursed amounts) or outstanding loan commitment amount, average
loan amount, weighted average LTV and weighted average DSCR, as of
December 31, 2024. See information above for the weighted average
LTV and DSCR calculations. For loans and commitments over $50.0
million, $181.8 million related to hotels in California, New York,
and Texas, $143.1 million related to multi-family properties
located in Kansas, and $60.0 million related to an office building
in Texas.
Average
Weighted
Weighted
Count
Amount
Amount
LTV
DSCR
(Dollars in thousands)
Greater than $50 million
6
$
384,910
$
64,152
55.9
%
1.49
x
>$30 to $50 million
6
210,870
35,145
65.9
1.41
>$20 to $30 million
17
413,149
24,303
68.2
1.34
>$15 to $20 million
8
134,805
16,851
62.6
1.67
>$10 to $15 million
11
128,264
11,660
66.5
1.61
>$5 to $10 million
29
205,966
7,102
64.4
1.84
$1 to $5 million
113
262,671
2,325
60.1
2.13
Less than $1 million
584
126,693
217
53.9
3.80
774
$
1,867,328
2,413
62.3
1.75
The following table summarizes the Bank's commercial and
industrial loans by loan purpose as of the dates indicated. As of
December 31, 2024, the Bank had two commercial and industrial loan
commitments totaling $981 thousand, at a weighted average rate of
7.95%.
December 31, 2024
September 30, 2024
Unpaid
Undisbursed
Gross Loan
Gross Loan
Count
Principal
Amount
Amount
Amount
(Dollars in thousands)
Working capital
164
$
47,978
$
38,208
$
86,186
$
74,097
Purchase/refinance business assets
57
41,562
504
42,066
37,950
Finance/lease vehicle
252
26,655
—
26,655
28,318
Purchase equipment
70
8,998
14,474
23,472
15,457
Other
21
6,074
2,069
8,143
7,735
564
$
131,267
$
55,255
$
186,522
$
163,557
6.66
%
7.23
%
6.83
%
6.89
%
Asset Quality
The following tables present loans 30 to 89 days delinquent,
non-performing loans, and other real estate owned ("OREO") as of
the dates indicated. The amounts in the table represent the unpaid
principal balance of the loans less related charge-offs, if any. Of
the loans 30 to 89 days delinquent at December 31, 2024,
approximately 81% were 59 days or less delinquent. Nonaccrual loans
are loans that are 90 or more days delinquent or in foreclosure and
other loans required to be reported as nonaccrual pursuant to
accounting and/or regulatory reporting requirements and/or internal
policies, even if the loans are current. Non-performing assets
include nonaccrual loans and OREO. The increase in 30-89 day
delinquent commercial real estate loans as of December 31, 2024 was
due primarily to a $15.5 million Community Reinvestment Act loan.
The borrower is in the process of obtaining tax credit funding
which will service the loan until the project is stabilized. The
tax credit funding is anticipated to be received by the borrower
during the quarter ended March 31, 2025.
Loans Delinquent for 30 to 89
Days at:
December 31, 2024
September 30, 2024
June 30, 2024
March 31, 2024
December 31, 2023
Number
Amount
Number
Amount
Number
Amount
Number
Amount
Number
Amount
(Dollars in thousands)
One- to four-family:
Originated
79
$
9,768
69
$
8,884
70
$
7,148
72
$
6,803
77
$
7,746
Correspondent purchased
11
2,988
12
3,049
13
5,278
10
3,144
16
6,049
Bulk purchased
1
32
2
68
1
277
5
856
4
583
Commercial:
Commercial real estate
7
18,373
11
2,996
10
2,516
9
3,111
13
3,579
Commercial and industrial
1
125
4
391
5
265
2
243
1
230
Consumer
35
679
35
642
40
926
35
601
40
766
134
$
31,965
133
$
16,030
139
$
16,410
133
$
14,758
151
$
18,953
30 to 89 days delinquent loans to total
loans receivable, net
0.40
%
0.20
%
0.21
%
0.19
%
0.24
%
Non-Performing Loans and OREO
at:
December 31, 2024
September 30, 2024
June 30, 2024
March 31, 2024
December 31, 2023
Number
Amount
Number
Amount
Number
Amount
Number
Amount
Number
Amount
(Dollars in thousands)
Loans 90 or More Days Delinquent or in
Foreclosure:
One- to four-family:
Originated
26
$
2,338
29
$
2,274
24
$
2,046
23
$
2,380
29
$
3,749
Correspondent purchased
8
3,843
8
4,024
7
3,860
8
3,969
10
4,164
Bulk purchased
4
1,256
5
1,535
4
1,271
3
962
2
942
Commercial:
Commercial real estate
7
2,038
7
1,163
6
1,078
7
1,076
6
1,116
Commercial and industrial
3
309
2
82
2
82
4
127
2
82
Consumer
22
356
20
436
13
236
10
250
5
116
70
10,140
71
9,514
56
8,573
55
8,764
54
10,169
Loans 90 or more days delinquent or in
foreclosure as a percentage of total loans
0.13
%
0.12
%
0.11
%
0.11
%
0.13
%
Nonaccrual loans less than 90 Days
Delinquent:(1)
Commercial:
Commercial real estate
6
$
1,096
3
$
326
—
$
—
—
$
—
1
$
18
Commercial and industrial
1
125
2
252
1
30
1
25
—
—
7
1,221
5
578
1
30
1
25
1
18
Total nonaccrual loans
77
11,361
76
10,092
57
8,603
56
8,789
55
10,187
Nonaccrual loans as a percentage of total
loans
0.14
%
0.13
%
0.11
%
0.11
%
0.13
%
OREO:
One- to four-family:
Originated(2)
—
$
—
1
$
55
—
$
—
1
$
67
2
$
225
Correspondent purchased
—
—
—
—
—
—
—
—
1
219
—
—
1
55
—
—
1
67
3
444
Total non-performing assets
77
$
11,361
77
$
10,147
57
$
8,603
57
$
8,856
58
$
10,631
Non-performing assets as a percentage of
total assets
0.12
%
0.11
%
0.09
%
0.09
%
0.11
%
(1)
Includes loans required to be
reported as nonaccrual pursuant to internal policies even if the
loans are current.
(2)
Real estate-related consumer
loans where we also hold the first mortgage are included in the
one- to four-family category as the underlying collateral is one-
to four-family property.
The following table presents the amortized cost of loans
classified as special mention or substandard at the dates
presented. Included in the commercial real estate substandard loans
at December 31, 2024 is a participation loan for $39.1 million
related to a hotel in Texas. The property is taking longer than
projected to stabilize and the borrower is not meeting the debt
service coverage loan covenant required by the loan agreement. The
LTV on this loan was 47.5% as of December 31, 2024. As the hotel
continues to increase occupancy and interest rates decrease on this
adjustable-rate loan, it is expected that cash flows from the
operations of the hotel will improve sufficiently to allow the debt
service coverage to be sufficient to meet the debt service coverage
ratio covenant within the loan agreement without additional
support. The loan was not delinquent as of December 31, 2024.
December 31, 2024
September 30, 2024
Special Mention
Substandard
Special Mention
Substandard
(Dollars in thousands)
One- to four-family
$
12,481
$
22,255
$
17,528
$
22,715
Commercial:
Commercial real estate
15,106
42,249
16,169
2,302
Commercial and industrial
1,795
435
413
335
Consumer
219
512
326
487
$
29,601
$
65,451
$
34,436
$
25,839
Allowance for Credit Losses: The Bank is utilizing a discounted
cash flow approach for estimating expected credit losses for pooled
loans and loan commitments. Management applied qualitative factors
at December 31, 2024 to account for large dollar commercial loan
concentrations and potential risk of loss in market value for newer
one- to four-family loans. These qualitative factors were applied
to account for credit risks not fully reflected in the discounted
cash flow model.
The distribution of our ACL and the ratio of ACL to loans
receivable, by loan type, at the dates indicated is summarized
below. The increase in the ratio of the ACL to total loans as of
December 31, 2024 from September 30, 2024 was primarily the result
of commercial loan growth during the quarter. The ratio of ACL to
loans receivable has been generally consistent over the past two
quarters and given the economic outlook at December 31, 2024,
management expects it to remain relatively consistent through the
remainder of this fiscal year.
Distribution of ACL
Ratio of ACL to Loans
Receivable
December 31,
September 30,
December 31,
September 30,
2024
2024
2024
2024
(Dollars in thousands)
One- to four-family
$
3,757
$
3,673
0.06
%
0.06
%
Commercial:
Commercial real estate
17,812
15,719
1.32
1.32
Commercial and industrial
1,209
1,186
0.92
0.91
Construction
1,978
2,249
1.22
1.20
Total commercial
20,999
19,154
1.28
1.27
Consumer
241
208
0.21
0.19
Total
$
24,997
$
23,035
0.31
0.29
Management applied a qualitative factor for large dollar
commercial loan concentrations. The Company's commercial real
estate and construction loans generally have low LTVs and strong
DSCRs which serve as indicators that losses in the commercial real
estate and construction loan portfolios might be unlikely; however,
because there is uncertainty surrounding the nature, timing and
amount of expected losses, management believes that in the event of
a realized loss within the large dollar commercial loan pools, the
magnitude of such a loss is likely to be significant. The large
dollar commercial loan concentration qualitative factor addresses
the risk associated with a large dollar relationship deteriorating
due to a loss event. As part of its analysis, management considered
external data including historical loss information for the
industry and commercial real estate price index trending
information from a variety of reputable sources to help determine
the amount of this qualitative factor.
For one- to four-family loans, management believes there is
potential risk of loss in market value in an economic downturn
related to, in particular, newer originations where property values
have not experienced price appreciation like more seasoned loans in
our portfolio and applied a qualitative factor to account for this
risk. To determine the appropriate amount of the one- to
four-family loan qualitative factor as of December 31, 2024,
management considered external historical home price index trending
information, along with the Bank's recent origination/purchase
activity, historical loan loss experience and portfolio balance
trending, the one- to four-family loan portfolio composition with
regard to loan size, and management's knowledge of the Bank's loan
portfolio and the one- to four-family lending industry.
The Bank's commercial real estate ACL ratios, in aggregate,
continue to be higher than those of our peers. The following tables
present the average and median commercial real estate ACL ratios
for the Bank and two of the Bank's peer groups for the periods
noted. The Office of the Comptroller of the Currency ("OCC") peer
group consists of all savings banks greater than $1 billion in
assets and the asset size peer group consists of all banks between
$5 billion and $15 billion in asset size. The peer group
information is sourced from the respective peers' Call Reports.
Average
December 31
2022
March 31 2023
June 30 2023
September 30
2023
December 31
2023
March 31 2024
June 30 2024
September 30
2024
December 31
2024
Bank
1.30
%
1.28
%
1.45
%
1.57
%
1.58
%
1.60
%
1.57
%
1.32
%
1.32
%
OCC
0.92
%
1.21
%
1.22
%
1.21
%
1.14
%
1.10
%
1.11
%
1.10
%
N/A
Asset Size
1.19
%
1.17
%
1.19
%
1.23
%
1.16
%
1.16
%
1.16
%
1.18
%
N/A
Median
December 31
2022
March 31 2023
June 30 2023
September 30
2023
December 31
2023
March 31 2024
June 30 2024
September 30
2024
December 31
2024
Bank
1.30
%
1.28
%
1.45
%
1.57
%
1.58
%
1.60
%
1.57
%
1.32
%
1.32
%
OCC
0.84
%
1.00
%
0.98
%
1.06
%
1.02
%
0.98
%
1.02
%
0.99
%
N/A
Asset Size
1.16
%
1.13
%
1.12
%
1.12
%
1.10
%
1.14
%
1.08
%
1.09
%
N/A
Historically, the Bank has maintained very low delinquency
ratios and net charge-off rates. Over the past two years, the
Bank's highest ratio of commercial loans 90 days or more delinquent
to total commercial loans at a quarter end was 0.17%. The highest
such ratio for one- to four-family originated and correspondent
loans, combined, was 0.12%. The amount of total net recoveries
during the current quarter was $7 thousand. During the 10-year
period ended December 31, 2024, the Bank recognized $1.2 million of
total net charge-offs. As of December 31, 2024, the ACL balance was
$25.0 million and the reserve for off-balance sheet credit
exposures totaled $4.7 million. Management believes that this level
of ACL and reserves is adequate for the risk characteristics in our
loan portfolio.
The following table presents ACL activity and related ratios at
the dates and for the periods indicated.
For the Three Months
Ended
December 31, 2024
September 30, 2024
(Dollars in thousands)
Balance at beginning of period
$
23,035
$
25,854
Charge-offs:
One- to four-family
—
—
Commercial
—
(20
)
Consumer
(17
)
(39
)
Total charge-offs
(17
)
(59
)
Recoveries:
One- to four-family
3
3
Commercial
20
2
Consumer
1
1
Total recoveries
24
6
Net (charge-offs) recoveries
7
(53
)
Provision for credit losses
1,955
(2,766
)
Balance at end of period
$
24,997
$
23,035
Ratio of net charge-offs during the period
to average loans outstanding during the period
—
%
—
%
Ratio of net charge-offs (recoveries)
during the period to average non-performing assets
(0.07
)
0.57
ACL to non-performing loans at end of
period
220.02
228.25
ACL to loans receivable at end of
period
0.31
0.29
ACL to net charge-offs (annualized)
N/M
(1)
109
x
(1)
This ratio is not presented due
to loan recoveries exceeding loan charge-offs during the
period.
The balance of the reserves for off-balance sheet credit
exposures was $4.7 million at December 31, 2024 compared to $6.0
million at September 30, 2024. The decrease from the previous
quarter of $1.3 million was due primarily to a decrease in the
balance of commercial real estate off-balance sheet credit
exposures, mainly related to commitments that were funded during
the current quarter.
Securities Portfolio
The following table presents the distribution of our securities
portfolio, at amortized cost, at December 31, 2024. Overall,
fixed-rate securities comprised 95% of our securities portfolio at
December 31, 2024. The weighted average life ("WAL") is the
estimated remaining maturity (in years) after three-month
historical prepayment speeds and projected call option assumptions
have been applied. Weighted average yields on tax-exempt securities
are not calculated on a fully tax-equivalent basis.
Amount
Yield
WAL
(Dollars in thousands)
MBS
$
774,655
5.64
%
4.9
U.S. government-sponsored enterprise
debentures
71,915
5.37
2.6
Corporate bonds
4,000
5.12
7.4
$
850,570
5.62
4.8
The following table summarizes the activity in our securities
portfolio for the period presented. The weighted average yields for
the beginning and ending balances are as of the first and last days
of the period presented and are generally derived from recent
prepayment activity on the securities in the portfolio. The
beginning and ending WALs are the estimated remaining principal
repayment terms (in years) after the most recent three-month
historical prepayment speeds and projected call option assumptions
have been applied.
For the Three Months
Ended
December 31, 2024
Amount
Yield
WAL
(Dollars in thousands)
Beginning balance - carrying value
$
856,266
5.63
%
5.2
Maturities and repayments
(51,574
)
Net amortization of
(premiums)/discounts
876
Purchases
71,416
4.89
6.7
Change in valuation on AFS securities
(15,483
)
Ending balance - carrying value
$
861,501
5.62
4.8
Deposit Portfolio
The following table presents the amount, weighted average rate,
and percent of total for the components of our deposit portfolio at
the dates presented. The decrease in the deposit portfolio rate at
December 31, 2024 compared to September 30, 2024 was due mainly to
lower rates on retail certificates of deposit and retail money
market accounts.
December 31, 2024
September 30, 2024
December 31, 2023
% of
% of
% of
Amount
Rate
Total
Amount
Rate
Total
Amount
Rate
Total
(Dollars in thousands)
Non-interest-bearing checking
$
556,515
—
%
9.0
%
$
549,596
—
%
9.0
%
$
555,382
—
%
9.2
%
Interest-bearing checking
888,287
0.22
14.3
847,542
0.23
13.8
895,665
0.17
14.9
Savings
611,063
1.21
9.9
540,572
0.82
8.8
471,372
0.12
7.8
Money market
1,235,788
1.19
19.9
1,226,962
1.46
20.0
1,360,349
1.96
22.6
Certificates of deposit
2,914,464
4.15
46.9
2,965,310
4.25
48.4
2,738,827
3.79
45.5
$
6,206,117
2.34
100.0
%
$
6,129,982
2.45
100.0
%
$
6,021,595
2.20
100.0
%
As of December 31, 2024, approximately $757.8 million (or
approximately 12%) of the Bank's Call Report deposit balance was
uninsured, of which approximately $461.5 million related to
commercial and retail deposit accounts and with the remainder
mainly comprised of fully collateralized public unit deposits and
intercompany accounts. The uninsured amounts are estimates based on
the methodologies and assumptions used for the Bank's regulatory
reporting requirements.
The following table presents the amount, weighted average rate,
and percent of total for the components of our deposit portfolio,
split between retail non-maturity deposits, commercial non-maturity
deposits, and certificates of deposit at the dates presented.
December 31, 2024
September 30, 2024
December 31, 2023
% of
% of
% of
Amount
Rate
Total
Amount
Rate
Total
Amount
Rate
Total
(Dollars in thousands)
Retail non-maturity deposits:
Non-interest-bearing checking
$
434,432
—
%
7.0
%
$
418,790
—
%
6.8
%
$
428,368
—
%
7.1
%
Interest-bearing checking
819,644
0.09
13.2
799,407
0.10
13.0
841,350
0.08
14.0
Savings
607,803
1.22
9.8
537,506
0.83
8.8
468,003
0.12
7.8
Money market
1,145,615
1.09
18.5
1,149,212
1.37
18.7
1,296,977
1.92
21.5
Total
3,007,494
0.69
48.5
2,904,915
0.73
47.4
3,034,698
0.86
50.4
Commercial non-maturity deposits:
Non-interest-bearing checking
122,083
—
2.0
130,806
—
2.1
127,014
—
2.1
Interest-bearing checking
68,643
1.75
1.1
48,135
2.40
0.8
54,316
1.63
0.9
Savings
3,260
0.05
0.1
3,066
0.05
0.1
3,370
0.05
0.1
Money market
90,173
2.50
1.5
77,750
2.72
1.3
63,370
2.70
1.1
Total
284,159
1.22
4.6
259,757
1.26
4.2
248,070
1.05
4.1
Certificates of deposit:
Retail certificates of deposit
2,799,418
4.14
45.1
2,830,579
4.23
46.2
2,569,391
3.75
42.7
Commercial certificates of deposit
56,564
4.27
0.9
58,236
4.40
1.0
49,152
3.80
0.8
Public unit certificates of deposit
58,482
4.48
0.9
76,495
4.62
1.2
120,284
4.54
2.0
Total
2,914,464
4.15
47.0
2,965,310
4.25
48.4
2,738,827
3.79
45.5
$
6,206,117
2.34
100.0
%
$
6,129,982
2.45
100.0
%
$
6,021,595
2.20
100.0
%
The following table presents the amount, weighted average rate,
and percent of total for total retail deposits, commercial
deposits, and public unit certificates of deposit for the periods
noted.
December 31, 2024
September 30, 2024
December 31, 2023
% of
% of
% of
Amount
Rate
Total
Amount
Rate
Total
Amount
Rate
Total
(Dollars in thousands)
Total retail deposits
$
5,806,912
2.35
%
93.6
%
$
5,735,494
2.46
%
93.6
%
$
5,604,089
2.19
%
93.1
%
Total commercial deposits
340,723
1.72
5.5
317,993
1.84
5.2
297,222
1.50
4.9
Public unit certificates of deposit
58,482
4.48
0.9
76,495
4.62
1.2
120,284
4.54
2.0
Total
$
6,206,117
2.34
100.0
%
$
6,129,982
2.45
100.0
%
$
6,021,595
2.20
100.0
%
Borrowings
The following table presents the maturity of term borrowings,
which consist of FHLB advances, along with associated weighted
average contractual and effective rates as of December 31, 2024.
Amortizing FHLB advances are presented based on their maturity
dates versus their quarterly scheduled repayment dates.
Maturity by
Contractual
Effective
Fiscal Year
Amount
Rate
Rate(1)
(Dollars in thousands)
2025
$
450,000
3.07
%
2.76
%
2026
575,000
2.81
2.95
2027
525,000
3.25
3.35
2028
355,738
4.59
4.16
2029
158,750
4.45
4.45
2030
100,000
4.20
4.20
$
2,164,488
3.45
3.37
(1)
The effective rate includes the
impact of interest rate swaps and the amortization of deferred
prepayment penalties resulting from FHLB advances previously
prepaid.
The following table presents borrowing activity for the period
shown. The borrowings presented in the table have original
contractual terms of one year or longer or are tied to interest
rate swaps with original contractual terms of one year or longer.
Line of credit borrowings and finance leases are excluded from the
table. The effective rate is shown as a weighted average and
includes the impact of interest rate swaps and the amortization of
deferred prepayment penalties resulting from FHLB advances
previously prepaid. The weighted average maturity ("WAM") is the
remaining weighted average contractual term in years. The beginning
and ending WAMs represent the remaining maturity as of the first
and last days of the period presented.
For the Three Months
Ended
December 31, 2024
Effective
Amount
Rate
WAM
(Dollars in thousands)
Beginning balance
$
2,180,656
3.29
%
1.6
Maturities and repayments
(216,168
)
3.42
New FHLB borrowings
200,000
4.27
3.7
Ending balance
$
2,164,488
3.37
1.6
Maturities of Interest-Bearing Liabilities
The following table presents the maturity and weighted average
repricing rate, which is also the weighted average effective rate,
of certificates of deposit, split between retail/commercial and
public unit amounts, and non-amortizing FHLB advances for the next
four quarters as of December 31, 2024.
March 31,
June 30,
September 30,
December 31,
2025
2025
2025
2025
Total
(Dollars in thousands)
Retail/Commercial Certificates:
Amount
$
631,527
$
675,472
$
373,511
$
447,877
$
2,128,387
Repricing Rate
4.54
%
4.60
%
4.27
%
3.95
%
4.39
%
Public Unit Certificates:
Amount
$
17,856
$
8,341
$
9,961
$
9,735
$
45,893
Repricing Rate
4.90
%
4.51
%
4.46
%
3.92
%
4.53
%
Non-Amortizing FHLB Advances:
Amount
$
150,000
$
200,000
$
100,000
$
200,000
$
650,000
Repricing Rate
1.93
%
3.27
%
2.97
%
2.89
%
2.80
%
Total
Amount
$
799,383
$
883,813
$
483,472
$
657,612
$
2,824,280
Repricing Rate
4.06
%
4.30
%
4.01
%
3.63
%
4.03
%
The following table sets forth the WAM information for our
certificates of deposit, in years, as of December 31, 2024.
Retail certificates of deposit
0.8
Commercial certificates of deposit
0.6
Public unit certificates of deposit
0.6
Total certificates of deposit
0.8
Average Rates and Lives
At December 31, 2024, the gap between the Bank's amount of
interest-earning assets and interest-bearing liabilities projected
to reprice within one year was $(1.58) billion, or (16.6)% of total
assets, compared to $(1.51) billion, or (15.8)% of total assets, at
September 30, 2024. The change in the one-year gap amount was due
to an increase in the amount of projected liability cash flows
coming due in one year, as of December 31, 2024, partially offset
by an increase in the amount of projected asset cash flows during
the same time period, as compared to September 30, 2024. The
increase in liability cash flows was due primarily to a net
increase in non-maturity deposits between periods. The increase in
projected asset cash flows was due primarily to an increase in the
balance of adjustable-rate loans, partially offset by a decrease in
the balance of cash and a decrease in the projected amount of
fixed-rate mortgage-related asset cash flows due to a decrease in
projected prepayment speeds from September 30, 2024, as a result of
an increase in intermediate and long-term interest and mortgage
rates.
The amount of interest-bearing liabilities expected to reprice
in a given period is not typically significantly impacted by
changes in interest rates because the Bank's borrowings and
certificate of deposit portfolios have contractual maturities and
generally cannot be terminated early without a prepayment penalty.
If interest rates were to increase 200 basis points, as of December
31, 2024, the Bank's one-year gap would have been projected to be
$(1.75) billion, or (18.4)% of total assets. If interest rates were
to decrease 200 basis points, as of December 31, 2024, the Bank's
one-year gap would have been projected to be $(1.17) billion, or
(12.3)% of total assets. The changes in the gap amounts compared to
when there is no change in rates was due to changes in the
anticipated net cash flows primarily as a result of projected
prepayments on mortgage-related assets in each rate environment. In
higher rate environments, prepayments on mortgage-related assets
are projected to be lower, and in lower rate environments,
prepayments are projected to be higher. This compares to a
projected one-year gap of $(1.71) billion, or (17.9)% of total
assets, if interest rates were to have increased 200 basis points
as of September 30, 2024, and a projected one-year gap of $(1.19)
billion, or (12.5)% of total assets, if interest rates were to have
decreased 200 basis points as of the same date.
The following table presents the weighted average yields/rates
and WALs (in years), after applying prepayment, call assumptions,
and decay rates for our interest-earning assets and
interest-bearing liabilities as of December 31, 2024. Yields
presented for interest-earning assets include the amortization of
fees, costs, premiums and discounts, which are considered
adjustments to the yield. The interest rate presented for term
borrowings is the effective rate, which includes the impact of
interest rate swaps and the amortization of deferred prepayment
penalties resulting from FHLB advances previously prepaid. The WAL
presented for term borrowings includes the effect of interest rate
swaps.
Amount
Yield/Rate
WAL
% of Category
% of Total
(Dollars in thousands)
Securities
$
861,501
5.62
%
3.7
9.5
%
Loans receivable:
Fixed-rate one- to four-family
5,303,313
3.44
6.8
66.5
%
58.2
Fixed-rate commercial
519,277
4.96
2.8
6.5
5.7
All other fixed-rate loans
37,899
7.06
7.3
0.5
0.4
Total fixed-rate loans
5,860,489
3.60
6.4
73.5
64.3
Adjustable-rate one- to four-family
891,372
4.21
4.5
11.2
9.8
Adjustable-rate commercial
1,127,216
6.03
5.1
14.1
12.4
All other adjustable-rate loans
93,952
8.10
3.1
1.2
1.0
Total adjustable-rate loans
2,112,540
5.35
4.8
26.5
23.2
Total loans receivable
7,973,029
4.06
6.0
100.0
%
87.5
FHLB stock
100,364
9.47
1.9
1.1
Cash and cash equivalents
170,324
3.62
—
1.9
Total interest-earning assets
$
9,105,218
4.26
5.6
100.0
%
Non-maturity deposits
$
2,735,138
0.88
5.6
48.4
%
35.0
%
Retail certificates of deposit
2,799,418
4.14
0.8
49.6
35.8
Commercial certificates of deposit
56,564
4.26
0.6
1.0
0.7
Public unit certificates of deposit
58,482
4.48
0.6
1.0
0.8
Total interest-bearing deposits
5,649,602
2.57
3.1
100.0
%
72.3
Term borrowings
2,165,561
3.37
1.6
27.7
Total interest-bearing liabilities
$
7,815,163
2.79
2.7
100.0
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250129502202/en/
For further information contact: Kent Townsend Executive Vice
President, Chief Financial Officer and Treasurer (785) 231-6360
ktownsend@capfed.com Investor Relations (785) 270-6055
investorrelations@capfed.com
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